IAS 16 - Revaluation model for property, plant and equipment and Impairment

[Patch]

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But each asset/investment has check box to enable

• unrealised gain
• Realised gains
• Depreciation

Together with optional custom accounts for each

[Tut]

@gxtsoft

Manager already has modules that support the user with an assistant for fixed assets measured at cost and, on the other hand, the management of depreciation at cost.

@gxtsoft, I do not know what you mean by “an assistant.” Manager’s calculations of depreciation and resulting book value are based on parameters defined manually for each fixed asset. Such calculations involve only fixed formulae. The program cannot determine revaluation on its own. The user must provide that information.

I asked what you wanted to automate, but you did not answer. Instead, you pointed out other features of the program that are not relevant. You seem to think depreciation calculations are automated in some way. They are not. So they do not furnish support for your apparent belief that revaluation can be automated.

[gxtsoft]

@Tut Let’s make it simpler. Tell me, what is the advantage that the software offers to manage external information related to fixed asset revaluations? What options does the software offer me to optimize the accounting treatment of fixed asset revaluations? I would hope not to read an answer such as “make journal entries in your respective module.” I also suggest that you read IAS 16 to learn more about what I am discussing in this topic.

[Abeiku]

I previously requested access to accumulated depreciation accounts in journal entries to meet accounting standards. From the example journal above, it seems this feature is now available, which is great news.

With this update, businesses can make the necessary entries to comply with IFRS requirements, they just need to create other relevant accounts, like revaluation surplus, to support accurate journal postings.

In my opinion, for businesses that do not anticipate selling a fixed asset in the long term, the cost model is a practical choice. It eliminates the need to determine the asset’s value for revaluation purposes. While most users of Manager will likely opt for the cost model, it’s essential to allow flexibility for other approaches and for student using this excellent tool for learning accounting.

Allow Accumulated Depreciation/Amortisation accounts in journals

Great Discussion guys. I really enjoy this. Using the above data. I think, IAS 16 will require a recognition of the Reverluation Reserve of 650 and Revalued Asset of 1650. i.e 1,000 + 650 - 450 = 1,200 Asset and 650 Revaluation Reserve. There is no need to Write off the Accum Depretn.